The infinite monkey theorem states that a monkey hitting keys at random on a typewriter keyboard for an infinite amount of time will almost surely type a given text, such as the complete works of William Shakespeare. This makes perfect sense to me, but says more about infinity than it does about monkeys. (more…)
Doug Peebles (pictured) and Michael Mon
As we enter a period of rising rates, many bond investors are growing more aware of the risks of benchmark-oriented bond portfolios. It may be time to sit the benchmark down and consider more flexible, unconstrained approaches to fixed income. (more…)
With interest rates at historic lows and the number of risk-free assets in the world shrinking, sovereign bonds are becoming an increasingly risky and complex asset class. In this environment, tethering portfolios to benchmark bond indices is fraught with problems.